Can Markets Cut Carbon?

Two of the largest market-based initiatives to cut carbon dioxide emissions are the EU ETS (EU Emissions Trading Scheme) and the RGGI (Regional Greenhouse Gas Initiative; in the Northeastern United States.) The EU is talking about a common European energy policy. US corporations are working with environmental groups.

What is the role of carbon trading (cap and trade) in cutting emissions? This article explores some basics and links to a number of great sites. Could carbon trading curb emissions by placing a price on carbon? How will it work globally?